Here is a bad news for boozers. Come June, the boozers would have to shell out more money to buy their favourite liquor brand. The Indian Made Foreign liquor (IMFl), draught beer, imported liquor and wine would be costlier by 15 to 20 per cent while the rates of cheap segment of IMFl and bottle beer will cut down by at least 15 per cent in Chandigarh.
Announcing the Excise Policy for 2014-15, the UT Administration has enhanced the excise duty on IMFl, draught beer, imported liquor and wine by 10 per cent to 25.50 per cent on different categories, whereas, on cheap segment of IMFl and bottled beer, it has been reduced by 17 per cent and 50 per cent respectively. The excise duty on country liquor has been kept unchanged.
The new Excise Policy for the year 2014-15 would be effective for a period of 10 months commencing from June 1, 2014 to March 31, 2015.
Talking about the new Excise Policy, UT Assistant Excise and Taxation Commissioner RC Bhalla said that the luxury brands of liquor would be costlier by 15-20 per cent while other brands will be cheaper by 15 per cent in Chandigarh.
The rates of luxury liquor brands in Chandigarh would be higher than neighbouring States of Punjab and Haryana.
In its new Excise Policy, the UT Administration has decreased the permissible number of retail sale vends from 217 to 173 vends, which will be granted licence by inviting sealed tenders.
Bhalla said, “Earlier, the Union Territory of Chandigarh had 217 liquor vends including 152 Indian made foreign liquor vends and 65 country liquor vends. While a number of liquor vends had remained unsold, the pre-fabricated vends were removed last year.” “Thus, this time, the number of permissible limit of vends has been decreased to 173 from 217 but there would be no loss in revenue generation, he added.
The overall quota of country liquor has also been reduced from 27 lakh proof litres to 10.82 lakh proof litres and for IMFl, it has been reduced from 200 lakh proof litres to 83.23 lakh proof litres for a period of 10 months. And, the quota of liquor will be distributed proportionately amongst vends keeping in view their licence fee.
Other excise levies on liquor have been increased by 33 per cent to 50 per cent and assessment fee leviable on liquor vends has been reduced by 33 per cent. The export fee on IMFl at Rs1 has been introduced by the UT Administration.
Also, to keep check on illegal service of liquor in private functions, the Administration has introduced a new licence in form l-5D to register the marriage halls/banquet halls/community centres, etc. on licence fee of Rs30,000.
In its new excise policy, the Administration has enhanced the license fee for the allotment of the liquor vends by around 11-16 per cent, except in case of licence to departmental stores; it has been increased to Rs10 lakh.
This time, amendments in the excise rules have been made to curtail last year’s trend during auction where liquor vends were being auctioned at higher prices and then surrendered to ensure monopoly of a liquor contractor in the same area.
To curb the monopolisation of trade by certain liquor contractors in a particular area, a waiting list of tenders will be prepared and in case a successful tenderer surrenders his vend after offering higher bid amount, his earnest money will be forfeited and offer will be given to the second highest tenderer in a row with terms and conditions.
Not a single bid was received for as many as 70 liquor vends during current fiscal year while about 17 vendors had surrendered their liquor vends after they failed to pay 30 per cent of the bid amount within the stipulated period of time.
Notably, the UT Administration had extended its excise policy 2013-14 for one month and it will end on May 31 now. After the extension, the licensees of 22 liquor vends including 17 of l-2 vends and five of country liquor opted out and had surrendered their licences.
In its excise policy 2013-14, the UT Administration had increased the excise duty from 20 percent to 300 per cent and assessment fee by 33 per cent. later, the Administration had reduced the reserve price of vends but had failed to attract bidders. The UT Administration has generated Rs227.08 crore revenue till March 2014. During fiscal 2012-13, the revenue collection was Rs250.46 crore.